myanmar draft condominium law

8/19/2019 Myanmar Draft Condominium Law

1/14

‐ 1 ‐

Convenience translation ‐ for further

information, please contact

[email protected]

Draft Condominium Law

Pyidaungsu

Hluttaw

Law

No.

/2013

1375,

Month

Day

(2013,

Month

Day)

The Pyidaungsu Hluttaw hereby enacts this law.

Chapter 1

Title, Relation and Definition

1.

This law shall be called the Condominium Law.

2.

This law shall cover the Naypyitaw Development Area, the Yangon City Development Area,

the Mandalay City Development Area and the towns and regions specified by notification

issued by the Ministry of Construction with the approval of the Union Government.

3.

The following expressions contained in this law shall have the meanings given hereunder‐

(a)

Condominium means a building constructed according to this law as collectively owned

high‐rise apartment building on collectively owned registered land. In this expression,

collectively owned properties managed for the purpose of being used by collective

owners are also included;

(b)

Collectively

owned

property means properties connected with collectively owned

buildings as follows‐

(1) collectively owned land registered according to this law;

(2)

the parts of the collectively owned building and installed equipments which are

beneficial to all collective owners, except individually owned apartments

constructed on the said collectively owned land;

(3)

Buildings constructed or managed to be used for the benefit of the collective

owners, educational and health buildings and properties, compounds, gardens, trees

and flowers, water supply, waste disposal and sanitary facilities, energy distribution

facilities, roads, bridges and drains, telecommunication facilities.

(c) Collectively owned land means land and vacant land that benefits all collective owners

and where the collectively owned building and the collectively owned property is

situated;


2/14

‐ 2 ‐



[email protected]

(d)

Foreigner means a person who is neither a citizen nor an an associated citizen nor a

naturalized citizen;

(e) Developer means a department, organization or person which/who has obtained a

business license issued under section 10, sub‐section (b) allowing it/him to invest money

in order to establish a condominium business. In this expression, banks and financial

institutions and insurance companies are not included;

(f)

Collective

owner means a person who has received an apartment ownership

registration certificate. In this expression, an heir to this person is also included;

(g)

Ownership

share

value means the ratio specified by the developer, with the agreement

of the

Department,

of

the

transferred

values

of

the

respective

apartments

of

the

condominium, or which is used to determine the amounts to be contributed towards the

fund for the management and maintenance of the condominium;

(h)

Apartment means an apartment constructed and separately walled in order to be

individually owned for residence or business purposes;

(i)

Association means a condominium association which has obtained a registration

certificate issued under section 23, sub‐section (b) of this law for the management and

maintenance of the condominium;

(j)

Member

of

the

association means

a person

who

has

received

an

apartment

registration

certificate evidencing that he owns an apartment in the condominium;

(k) Executive committee means the executive committee of a condominium elected and

organized under this law for the management and maintenance of the condominium;

(l) Temporary committee means a temporary committee of the condominium organized in

accordance with section 29 of this law;

(m) Ministry means the Ministry of Construction of the Union Government;

(n) Department means the Department of Human Settlement and Housing Development;

(o)

Director

General means

the

Director

General

of

the

Department

of

Human

Settlement

and Housing Development;

(p) Registrar means the condominium registrar appointed by the Ministry of Construction

and charged with registering the deeds and documents relating to condominiums and

collectively owned land.


3/14

‐ 3 ‐



[email protected]

Chapter 2

Objectives

4.

The objectives of this law are as follows:‐

(a)

To support urban and regional development;

(b)

To create community housing in order to provide adequate of housing for an increasing

population in the urban areas;

(c) To coordinate the work of the relevant government departments and organizations in order

to support urban area development and beautification;

(d)

To establish a legal framework in which condominium apartments can be legally owned and

transferred;

(e)

To increase cooperation with international organizations and regional organizations.

Chapter

(3)

Registration

and

establishment

of

a

condominium

5.

This law shall cover only collectively owned land and condominiums registered according to

this law.

6. The developer must construct the condominium only on collectively owned land registered

under this law.

7. Land which may be registered as collectively owned land under this law for the purpose of

constructing a condominium‐

(a)

shall be of the "residential area" type and of the type that allows the transfer of

ownership under any existing law;

(b) shall have been transformed into "collectively owned" land;

(c) shall be in conformity with the provisions stipulated by the relevant department or

organization for a specific urban project;

(d)

shall have

an

area

of

one

acre

or

more

than

one

acre.

If

the

area

is

less

than

one

acre,

special approval from the Ministry must be sought.

8. The Ministry shall specify the minimum number of floors, the minimum number of

apartments and the collective facilities to be used by the collective owners.

9.

If a building was completed, or if construction started, before the effective date of this law,

it may be registered as a condominium, provided that it conforms to the provisions


4/14

‐ 4 ‐



[email protected]

stipulated under section 7 and section 8. If it does not conform to these provisions, it may be

registered as

condominium

nevertheless

if special

permission

of

the

Ministry

is

acquired.

10. (a) A person desirous to establish a condominium business shall have a specified minimum

paid‐up capital and shall apply to the Department in accordance with the stipulations in

order to acquire a business license.

(b)If the Department accepts, after scrutiny, the license application under sub‐section (a), it

shall collect the license fee, prescribe terms and conditions and issue the business license.

(c) If the developer wants to extend the validity of the business license, he shall proceed in

accordance with the stipulations.

11.

(a) If

the

developer

wants

to

build

a condominium,

he

shall

apply

to

the

Department

in

accordance with the stipulations in order to acquire permission to do so; to the application

he shall attach required documents concerning the collectively owned land and the

condominium, the land and building map [like blueprint], information as to the collectively

owned facilities and the ownership share value.

(b) The Department shall submit the application under sub‐section (a) to the Ministry, collect

recommendations of the relevant development committee or development team, and

report to the Ministry with its own remarks.

12.

The Ministry

shall,

after

having

scrutinized

the

Department’s

submission

and

negotiated

with the relevant government departments and organizations, issue or refuse to issue the

permission.

13.

(a) The Ministry shall assign registrars to the duty of registering deeds and documentary

evidence regarding collectively owned land and condominiums.

(b) The developer shall register the deeds for establishing collectively (ownership over)

owned land with the relevant registrar.

(c) The registrar shall, after having scrutinized the deeds for establishing collectively owned

land, register

them

in

accordance

with

the

stipulations.

14.

Land which has been registered as collectively owned land may not be owned in the name of

any department, organization or person and shall exist as collectively owned land for the

benefit of all the collective owners.


5/14

‐ 5 ‐



[email protected]

15.

The developer‐

(a)

shall, upon

receiving

the

permission

issued

under

section

12,

construct

the

condominium on the registered collectively owned land in accordance with the

stipulations;

(b)

shall, if the construction of the condominium is completed, obtain the "residential

permission" under the existing laws and regulations and register with the registrar the

deeds and documentary evidence for establishing the condominium;

(c) shall have the right to transfer not more than 40% of apartment on the six floor and

above of the condominium to foreigners.

16.

The registrar

shall

retain

a copy

of

the

apartment

registration

certificate

after

having

issued

an apartment registration certificate to the developer. He shall register in accordance with

the stipulations the deeds and the documentary evidence for establishing the condominium

and the apartments of the condominium.

17. When transferring the registered apartment by any of the methods mentioned below, the

transferor and the transferee shall register the deeds in accordance with the stipulations

with the registrar within 30 days from the day of transfer‐

(a)

Gift, release, exchange;

(b)

sale;

(c)

transfer of ownership by an order or decree of a final and exclusive court.

18. (a) The developer shall pay the stamp duty specified by the Myanmar Stamp Act for the

deeds registered in connection with the collectively owned land and the condominium.

(b) The person to whom an apartment is transferred by any of the methods mentioned in

section 17 shall pay the specified stamp duty in accordance with the Myanmar Stamp Act

for the deed of transfer.

19. When registering the deed of transfer by any of the methods mentioned in section 17‐

(a)

the person

to

whom

the

apartment

is

transferred

shall

pay

the

registration

fees

in

accordance with the stipulations;

(b) the registrar shall issue an apartment registration certificate after having registered the

transfer in a separate registration book in accordance with the stipulations.

20. The collective owner shall pay the registration fees and the penalties specified by the

Ministry if the deed of transfer is, after he has transferred the apartment by any of the

means mentioned in section 17, registered after the specified period.


6/14


7/14

‐ 7 ‐



[email protected]

Chapter

(5)

Formation

of

the

condominium

executive

committee

and

its

functions

and

duties

26. (a) The temporary supervisory team shall convene a special general meeting of the

association to form the condominium executive committee in accordance with the

constitution of the association.

(b) After the first condominium executive committee is established, subsequent

condominium executive committees are to be formed by the annual general meeting of the

association held in accordance with its constitution.

(c) The elected executive committees formed under sub‐sections (a) and (b) shall consist of a

minimum of

five

and

of

a maximum

of

nine

members

of

the

association.

(d) The members of the executive committee formed under sub‐section (c) shall select the

chairman, secretary and treasurer from amongst the members and assign them their duties.

(e) A member who is knowledgeable in accounting shall be appointed as auditor. If it is

necessary, external auditors may be appointed.

27. (a) The annual general meeting or the special general meeting of the association shall have,

by majority vote of the members, the power to terminate a member if he is not dutiful

or guilty of malpractice.

(b) If

any

member

of

the

executive

committee

wants

to

resign

for

any

reason,

he

may

do

so

after having submitted his resignation letter to the executive committee.

(c) Any vacant post for member of the executive committee shall be filled in the annual

general meeting or special general meeting of the association.

28. The executive committee:

(a) shall, with the approval of the annual general meeting, issue the rules and regulations to

be followed by the members of the association and the residents of the condominium;

(b) shall, in accordance with the decision of the annual general meeting or the special

general meeting

of

the

association,

specify

the

contributions

of

the

members

of

the

association towards the fund [used for the maintenance of the condominium] based on

the ownership share value.

(c) The executive committee shall convene an annual general meeting or a special general

meeting to increase the ownership share value or extend or modify the condominium;

a majority of 3/4 of the votes of the members is required.


8/14

‐ 8 ‐



[email protected]

(d) shall, regarding the use of the fund to which the members contribute, compile

accounting documents

and

have

them

examined

by

the

auditor.

A

statement

on

the

expenses covered from the fund shall be sent to every member;

(e) shall obtain fire insurance and other necessary insurances for the condominium;

(f) shall levy a fine on any member who omits to contribute to the fund equivalent to the

amount of a single contribution.

(g) shall open a bank account and systematically maintain the fund.

(h) shall submit a report regarding the raising, performance and using of the fund to the

annual general meeting of the association and shall implement measures in accordance with

the general

meeting’s

decision.

A

report

of

the

activities

of

the

association

and

an

audited

financial report shall be submitted to the nearest annual general meeting to obtain its

approval;

(i) shall maintain and renovate the condominium for the benefit of the members;

(j) shall appoint the necessary employees for the management and maintenance of the

condominium;

(k) shall inspect whether the water supply system, sewage and waste water disposal system

and sanitary system, power distribution system, roads, bridges and drains,

telecommunication and

security

system

are

working

and

shall,

where

necessary,

repair

or

exchange these facilities;

(l) shall, after scrutinizing the member’s application, issue a recommendation letter to be

filed together with a member’s application to the relevant government department or

organization for obtaining permission to carry out maintenance or renovation work in the

member’s apartment;

(m) shall convene regular meetings of the executive committee and annual general meetings

of the association in accordance with the stipulations. Shall convene special meetings of the

executive committee

and

special

meetings

of

the

association

in

accordance

with

the

constitution of the association;

(n) shall upkeep the records of the collectively owned land, of the condominium and of the

apartments and also shall compile the records concerning the transfer of apartments;

(o) shall issue, after scrutinizing the matter, a recommendation concerning the transfer of an

apartment by any of the methods mentioned in section 17;


9/14

‐ 9 ‐



[email protected]

(p) shall, if necessary, certify the registered documents kept by the registrar to check

whether the

transfer

of

an

apartment

by

any

of

the

means

mentioned

in

section

17

is

done

correctly or not.

(q) shall conciliate disputes occurring amongst residents of the condominium.

29. The Department shall, for the time that no executive committee is established, form a

temporary executive committee consisting of a minimum of three suitable persons out of

the members of the association which is to temporarily assume the duties of the executive

committee.

30. (a) If 1/4 of all the members want to amend the constitution of the association they shall

submit the

matter

to

the

executive

committee.

(b) The executive committee shall seek the approval of the Department for the amendment

and shall amend, supplement, substitute or repeal the constitution of the association if the

motion is approved by at least 3/4 of all members in the annual or in a special general

meeting of the association.

(c) The executive committee shall submit the amended constitution of the association to the

Department.

Chapter

(6)

Rights

and

obligations

of

the

member(s)

31. A member‐

(a) shall have the right to register, with the registrar, documents for the transfer of an

apartment by any method of transfer mentioned in section 17. He shall have the right to

change the title to the transferee;

(b) shall be entitled to own the apartment after the transfer documents have been

registered under this law;

(c) shall

have

the

right

to

sell,

exchange,

give

as

a gift,

release,

lease

or

mortgage

the

apartment to/with a citizen or allow a citizen to occupy it;

(d) (i) shall have the right to lease or mortgage the apartment to a foreigner or allow a

foreigner to occupy it;

(ii) shall have the right to sell, exchange, give as a gift and release not more than 40% of

the apartments located on the sixth floor of the condominium and above to a foreigner;


10/14

‐ 10 ‐



[email protected]

(e) shall have, after acquiring the permission of the executive committee, the right to

renovate, and

do

minor

repairs

of,

the

interior

part

of

his

apartment

at

his

expenses

if these

works do not affect the original design and strength of the condominium;

(f) shall own the fund of the association together with all the collective owners;

(g) shall, with the permission of the executive committee, have the right to use the

collectively owned land temporarily for social affairs;

(h) shall have the right to attend the annual general and special meetings of the association

and, at the meeting, make proposals, vote, be elected as member of the executive

committee and elect members of the executive committee.

32. The

member

‐

(a) shall contribute towards the fund kept for the maintenance and management of the

condominium on the basis of the ownership share value. The member shall also make these

contributions if he has rented out the apartment and there is no specific agreement with the

lessee;

(b) shall be collectively responsible to take care of the sustainability of the condominium and

the collectively owned properties and for keeping the good condition of the sanitation and

security system of the condominium;

(c) shall

inform

the

executive

committee

if the

apartment

owned

by

him

is

rented

out

or

mortgaged or he has given permission to a person to occupy it;

(d) shall inform the executive committee in advance according to the stipulations before

transferring his apartment by any of the methods of transfer mentioned in section 17;

(e) shall be responsible for any damage to the condominium or collectively owned

properties that has arisen by his own fault or by the fault of the lessee or the mortgagee in

possession or a person staying in the apartment with the member's permission, unless there

is a specific agreement with such persons.

(f) shall,

if he

renovates

the

apartment

or

performs

minor

repairs

of

the

apartment

with

the

permission of the executive committee, not affect the building’s original design and

strength;

(g) shall, if he obtains specific permission from the executive committee, have the right to

use the apartment for other purposes apart from residence and doing business.


11/14

‐ 11 ‐



[email protected]

Chapter

(7)

Functions

and

duties

of

the

Department

33. (a) The Department shall specify the rules and regulations to be followed by the residents of

the condominium with the consent of the Ministry.

(b) The Department shall perform the following functions and duties under the guidance of

the Ministry ‐

(i) shall lead, organize, educate and motivate in order to create adequate housing in

densely populated urban areas, ameliorate modern high‐rise buildings and moderate the

development of the condominium system;

(ii) shall

communicate

with

the

relevant

government

departments

and

organizations,

regional organizations and international organizations and provide necessary assistance

to the developers in order to achieve a modern development of condominiums;

(iii) shall render necessary support to the executive committees after laying down rules

pertaining to the sustainability, neatness and tidiness and renovation of the completed

condominiums;

(iv) shall give, after having scrutinized the matter, its consent to the ownership share

value proposed by the developer for the respective apartment in the condominium;

(v) shall

research,

study

and

disseminate

local

and

foreign

technologies

relevant

to

developing the condominium system;

(vi) shall inspect the accounts for the fund of the association if necessary.

Chapter

(8)

Reconstruction

after

dismantling

the

condominium

and

terminating

the

condominium

system

34. The whole or part of the condominium building shall be reconstructed, or the condominium

system shall be terminated for any reason, if 75% of the members vote in favour of it in an

annual or

special

general

meeting.

35. (a) The executive committee shall submit the decision of the general meeting passed in

accordance with section 34 to the Department in accordance with the stipulations in order

to implement it.

(b) The Department shall forward the submission made in accordance with sub‐section (a) to

the Ministry together with the Department’s opinion and remarks.


12/14

‐ 12 ‐



[email protected]

(c) The Ministry shall, after having scrutinized the submission of the Department, approve or

refuse it

after,

if necessary,

having

consulted

with

the

relevant

government

departments

and organizations.

(d) The executive committee shall, upon having acquired the Ministry’s approval, make

appropriate announcements in the newspaper in order to make concerned parties aware of

the matter.

36. (a) The executive committee shall submit a copy of the decision of the annual or special

general meeting together with a copy of the Ministry’s approval within 30 days from the day

of issuance of the approval to the registrar.

(b) The

registrar

shall

make

necessary

amendments

or

cancellations

in

the

relevant

registration book.

37. (a) The executive committee shall submit, to the Department, a list of the persons who do not

remove themselves when the condominium is reconstructed according to the original design

after the whole or part of the building was dismantled, or the condominium system was

terminated, with the approval of the Ministry.

(b) The Department shall obtain the assistance of the Myanmar People’s Police Force to

remove persons featuring in the submission under sub‐section (a) for security reasons.

38. (a)

The

executive

committee

shall,

after

having

obtained

the

approval

of

the

Ministry

to

terminate the condominium system, request the Department to appoint a liquidator.

(b) The Department shall appoint as liquidator a person competent in accounting who has at

least a diploma in accounting.

(c) The Department shall terminate the functions and duties of the executive committee

after appointing the liquidator.

(d) The liquidator shall arrange for the reimbursement of the ownership share value to the

respective members and the settlement of liabilities and rights. In doing so, the liquidator

may exercise

the

duties

and

powers

of

a liquidator

under

the

Myanmar

Companies

Act

without the permission of the court.


13/14

‐ 13 ‐



[email protected]

Chapter

(9)

Offences

and

penalties

39. Any member and any resident of the condominium convicted [note: literal translation] of

having violated any regulations stipulated by the Department with the consent of the

Ministry shall be liable to a fine of not more than kyats 100,000.

40. Any person convicted of having violated any prohibition contained in this law, or having failed

to observes any duties stipulated by the rules and orders issued under this law, shall be

liable to a fine of not more than kyats 300,000.

41. Any person convicted of having failed to register the transfer agreement for transferring an

apartment under

section

17

shall

be

liable

to

a fine

of

not

more

than

kyats

500,000.

42. Any person violating the provisions under section 39, section 40, section 41 and, after having

been convicted, continues to commit the same offence, shall, for each day on which he

committed the offence, be liable to a fine of 10% of the maximum fine stipulated for the

respective offence.

Chapter

(10)

Miscellaneous

43. A

person

not

entitled

to

ownership

or

possession

of

the

condominium

and

collectively

owned

property does not become entitled to ownership or possession by virtue of the matter

having become time‐barred according to the Limitation Act.

44. The registrar‐

(a) shall collect the fine from the person who fails to settle the fine under section 20 as

arrears of land revenue and shall recompense the Department;

(b) shall collect the contributions to the fund and the fines which are receivable by the

association from the person who fails to make the contributions to the fund under

section 28,

sub

‐section

(f)

as

arrears

of

land

revenue

and

recompense

the

association;

45. In order to implement the provisions stipulated under this law‐

(a) The Ministry may issue necessary rules, regulations and byelaws with the consent of the

Union Government;

(b) The Ministry may issue necessary notifications, orders, directives and procedures. The

Department may issue necessary orders and directives.


14/14

‐ 14 ‐



[email protected]

This text

is

published

for

to

make

the

public

aware

of

it

and

solicit

suggestions.

myanmar draft condominium law

Documents